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Monthly Archives: September 2012

For individuals who need cash now, companies that provide quick payday loans are often the best option to take. If you need cash quick loans urgent, you no longer need to rely on your friends and family. Payday loans are a financial project that is designed to help you out times of urgent financial need.

It’s understandable that many consumers still have concerns about payday credit facilities that are so widely advertised these days. Many borrowers are unsure whether or not to apply for and obtain the loans, as they are worried about the high cost of these transactions. Thus, it might be helpful if we can clear up a few misconceptions about what a payday loan is.

What are fast payday loans?

Fast cash loans today are available to borrowers who need cash now. It is important that there is some way of obtaining money when you need it most, for example, in times of emergency. Loan providers aim to approve and provide financial assistance in the quickest way possible. This is made possible by borrowing against your next wage packet.

In order to obtain a payday loan, you will need to meet the requirements set down by the lender. The borrower should be citizen of the UK, and be at least 18 years old. Most companies will require that you have a bank account, and will likely ask to see proof of employment, which can be part-time or full-time.

The application form can be downloaded and completed online, in order to make the process more convenient. Processing is always fast, and in some cases may even be instant. The amount can be handed over personally in cash, provided in the form of a cheque, or transferred to your bank account electronically.

The repayment process

Payday loan companies are very particular about the repayment arrangements, in order to protect themselves and you. The money will only be handed over. If the borrower agrees to the repayment requirements, which usually means that you agree for the repayment amount to be deducted by direct debit from your bank account on your next payday.

The lender will inform you of the interest rates and any other fees that will be automatically deducted from your bank account on the agreed date. The overall amount depends on the interest rate applied. It varies among different lenders. However, in most cases, a £25 interest charge will be applied to a £100 loan, so that the overall repayment to be deducted from your bank account will total £125.

Using broker services

The most common way to obtain a payday loan is by using the services of professional brokers, who are able to match you up with the best lender to meet your needs. The advantage of using a broker is that they will usually complete all of the tedious paperwork on your behalf.

Payday loans facilitated through brokers are becoming more popular, because they are able to make sure that you don’t experience any hassle during your application, thus increasing your chances of being accepted for a loan. In addition, brokers can also provide guidance when choosing the best payday loan products.

Earlier most of the Americans used to think that they will work in some big company for 40 years, build up a big pension. Once they retire, they will enjoy their golden years on that pension. Sadly, this dream has changed a lot in the last twenty years. People still want to retire and live comfortably, the 401k plan has surpassed the pension plan as the retirement vehicle of choice.

Pensions : Whenever people think about pensions, the first thing that comes in mind is of retirement platforms known as defined benefit plans. These plans have a guaranteed payout amount on retirement. The amount of money is determined by the number of years worked, amount contributed, salary and other factors that vary from plan to plan.

401k : This happens to be more modern retirement platform and is gaining a lot of popularity with many companies. These plans have been in existence since 1980s and they were not for the common people in the beginning years. Instead, they were usually meant for executives who can benefit from these plans. Nowadays, many companies are using it as retirement vehicles for their employees and executives alike. Its a kind of a contribution plan which means that employees can contribute up to a certain amount when they choose to do so. If the employers want, they can also contribute to the employees account.

Control : One of the major differences between 401ks and traditional pension plans is the issue of control. Who will control how the money is invested once it is in the plan? In case of traditional pension plan, control is given to trustee for the pension and tends to make very conservative investments in order to protect the pool of money. In a 401k, the employee has the full control over how much money will be invested. There may be limits on the type or number of investments pursued by him, but thats the only drawback to look at.

Which is the best plan ? If people were asked this question five years ago, then they would have preferred 401k for sure. But now, since the time of great recession hit and many people realizing that they were not good in picking stocks. The idea of having a stable, conservative investment like those found in pensions has started to seem a lot more attractive to such people than it did before the economic troubles came along.

Different people have different answer to this question. People who are comfortable with the investment world will find 401k to be more sensible. But if you have someone who will make investment decisions for you, a pension plan may be the way to go. Some people will prefer 401k plan for couple of reasons. They will have control on their investment. And they can contribute any amount each year. Whatever you decide, make sure that you maximize your retirement savings to ensure a comfortable time in your golden years.